Investors should not 'hold out hope' for zero fund fees in Europe

Transparency issues with no-fee structures

Industry commentators have warned there are a number of transparency issues with no-fee structures following the launch of the first zero expense ratio index funds by Fidelity Investments in the US, adding it is unlikely this model will be replicated in Europe in the near future.

On 2 August, Boston-based Fidelity Investments announced it would be launching the ZERO Total Market Index and ZERO International Index funds, which track the group's in-house equity indices. The firm said: "We are committed to giving you value you cannot find anywhere else. That is why we are introducing zero expense ratio index mutual funds. Layer on no minimums to invest in Fidelity mutual funds, no minimums to open an account, and no account fees - now that is value." The development comes a couple of years after a report published by S&P Dow Jones Indices in 2016, entitled The ri...